With favourable demographic trends, Asia Pacific halal foods and beverages market to grow at roughly 7% : Bonafide Research

Asia Pacific is the biggest halal foods and beverages market in the world. As demography plays a crucial role in a consumer market such as the foods and beverages market, the Muslim population in the region is the reason for the huge market size of the halal food and beverage market. According to the Asia Pacific Halal Foods and Beverages Market Outlook, 2027 published by Bonafide Research, based on the obtained data, the market stood around USD 930 Billion in 2021 which is anticipated to grow with more than 7% for 2022-2027.

Asia Pacific halal food and beverages market is driven by a favourable religious demographic trend. As per the Association for Asian Studies, of about 1.2 Billion Muslims globally, about 70% of the Muslims live in the Asia Pacific. With a Muslim population of 870 Million in the region, the population in some of the major economies in the region is still young and the population is rapidly growing. The region is also home to some of the fastest-growing economies in India such as India, Bangladesh, Indonesia. With favourable demographic outlook and strong economic indicators, the halal food and beverages market in the Asia Pacific region is poised to develop further. However, the supply chain and retailing of halal foods and beverages is still growing in the region. Box retailing in form of supermarket and hypermarkets are still growing in the region and e-commerce which is also the fastest-growing sales channel in the region is under development stage. As these infrastructural developments move forward, new varieties of halal foods and beverages products are expected to penetrate the market. The region is well aware of the halal norms, but the development of halal product lines into vegetables, fruits, grains, dairy, beverages, and bakery, and other items and making them a part of commercial retailing is a new phenomenon in the region. Even though halal meat, poultry and, sea-food market form the majority of the halal food and beverages share in the region, other halal products such as halal bakery, confectionery, and halal beverages products have shown a strong growth rate during the review period of 2016-2021 and have been optimistically forecasted till 2027.

The region has an expanding middle class. As the regional economies progress further, the disposable income with households is going to increase to create demand for new halal varieties of foods and beverages products. However, the halal food and beverages market in the Asia Pacific region is highly fragmented with a large number of players being small and middle scale enterprises. There is not just significant scope of consolidation but a big scope for scaling up and expansion of business. As the market is so fragmented, it is difficult to monitor and effectively checkthe supply chain for the products. When the supply chain is so vast and fragmented, there inevitably exists a risk for contamination or other non-adherence of halal standards. For a long time,the local Muslim butchers in the region used to see halal meat products. People used to have confidence in the halal authenticity of the food they are buying from these local butchers. As these halal products started getting available in packaged forms in supermarkets, hypermarkets and, other retail channels, people started taking halal labelling more seriously and demand for halal labelled and certified products went up. The region is also a major importer of halal products from North and Latin American countries. However, as those countries have Islam as a minority religion, the certification standards are stringent to maintain the integrity and standard of halal.